2. Supply and Demand

Market Equilibrium — Quiz

Test your understanding of market equilibrium with 5 practice questions.

Practice Questions

Question 1

What is the effect on the equilibrium price when there is a decrease in demand, assuming supply remains constant?

Question 2

If the demand function is given by $Q_D = 80 - 2P$ and the supply function is given by $Q_S = 20 + 4P$, what is the equilibrium price (P) and quantity (Q)?

Question 3

What is the primary factor that causes a movement along the demand curve?

Question 4

Which of the following would cause a shift in the demand curve to the left?

Question 5

If the supply function is given by $Q_S = 5P - 10$ and the demand function is given by $Q_D = 140 - 5P$, what is the equilibrium quantity (Q)?